RCM Technology’s figures, covering the year ended 30 November 2013, show the fund beating its benchmark by some margin. The total net asset value return for RTT was 47.2% over the year vs. 20.5% for the Dow Jones World Technology Index.
On the back of this strong performance, the managers, led by Walter Price (pictured) have earned a sizeable performance fee – about £6m. They will get 40% of this in shares in the company. The Board has decided to change the fee basis after this bumper year for the manager and has agreed that the basic fee (currently 1% of net assets) will fall to 0.8% and, crucially that the performance fee will be cut so that its is 12.5% of outperformance over the benchmark, capped at a maximum of 2.25% of NAV (the current performance fee is more like 6.5%) and there will be a high watermark (so the net asset value has to have risen since a fee was last paid)